BP swot

Topics: Petroleum, Natural gas, 2011 Pages: 11 (2980 words) Published: November 13, 2013
`BP is one of the largest vertically integrated oil and gas companies in the world.The company'soperations primarily include the exploration and production of gas and crude oil, as well as themarketing and trading of natural gas, power, and natural gas liquids. BP, with a focus to drive futureperformance, continuously invests in research and development (R&D). Strong R&D capabilitiesenable BP to attain competitive advantage over its peers, maintain technological edge over itscompetitors, and stay ahead of industry trends. However, the company is

Robust research and development capabilities
Vertically integrated operations
Wide geographic presence

Oil spill in the Gulf of Mexico

Transformational partnership between BPand Reliance Industries Expansion of the biofuels business in Brazil
Boosting of PTA production capacity inChina
Strategic agreements and contract

Risks concerning environmental
Instability in some oil-producing regions
Saturation of resources in the North Sea

Strengths

Robust research and development capabilities

BP, with a focus to drive future performance continuously, invests in research and development(R&D). Investment in R&D is also a measure of the company’s commitment to the future organic growth of the business. In FY2011, BP’s expenditure on R&D was $636 million.

As of FY2011, BP treated 78 wells with Bright Water technology in Alaska, Argentina, Azerbaijan,and Pakistan, which has delivered increased reserves at a development cost of less than $6 perbarrel, and with an 80% success rate. Moreover, BP continues to develop and apply innovative exploration technologies. BP has applied two novel seismic acquisition methods developed in-house.The distance separated simultaneous sources (DS3) and independent simultaneous sources (ISS)methods were used to complete ultra-large, high density land seismic surveys in the Middle East and North Africa. BP also has field trials under way to extend these acquisition methods to theoffshore.

Further in FY2011, BP developed a new range of industrial metalworking fluids that are both saferfor workers and less harmful to the environment, a new gear lubricant for maximizing the efficiencyof wind turbines, and co-engineered passenger car lubricants for optimizing engine fuel efficiency.It also opened a new industrial technology centre in Turin, Italy, which will serve customers across Europe and analyze about 30,000 oil samples a year. In alternative energy, BP is aligning technology capability with future growth platforms, particularly biofuels. It is also developing a technology tocommercialize cellulosic biofuels. BP has more than 29 separate investments spanning three broadareas: bioenergy, electrification, and carbon solutions.

Strong R&D capabilities provide BP to attain competitive advantage over its peers, maintaintechnological edge over its competitors, and stay ahead of industry trends. In addition, it allows thecompany to ensure safe and reliable operations by strengthening its portfolio, getting more from itsresource base and winning new access.

Vertically integrated operations

BP has vertically integrated operations as it is involved in upstream, midstream, and downstreamoil businesses.The company operates through two business segments: exploration and production;and refining and marketing.

Its upstream activities involve oil and natural gas exploration and field development and production.Its midstream operations involve the ownership and management of crude oil and natural gaspipelines, processing facilities and export terminals, and LNG processing facilities and transportation.It also includes BP's natural gas liquids (NGL) extraction businesses in the US, the UK, Canada,and Indonesia. Its most significant midstream pipeline interests are the Trans-Alaska Pipeline.Systemin the US, the Forties Pipeline System and the Central Area Transmission System pipeline in theUK sector of the North Sea, the South...
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